Mumbai, January 14 (IANS). On Wednesday, the third trading day of the week, precious metals (gold and silver) once again created a new record and reached their highest level ever. Due to soft inflation figures in America and increasing geopolitical tension in the world, investors are buying gold and silver as safe investments.
While gold touched the highest level of Rs 1,43,500 per 10 grams on MCX in Wednesday’s trading session, silver also reached a record high of Rs 2,87,990 per kg. Even last few days, these precious metals had touched their record levels.
However, at the time of writing (around 12.16 pm), gold for February delivery was trading at Rs 1,43,300 per 10 grams on MCX, up by Rs 1,059 or 0.74 percent. At the same time, silver for March delivery was trading at Rs 2,85,129 per kg with a rise of Rs 9,942 or 3.61 percent.
US core consumer price index (CPI) data for December showed inflation rose 0.2 per cent month-on-month and 2.6 per cent year-on-year, which were below expectations, giving market confidence that the US central bank may cut interest rates in the future. This provided support to gold prices.
Experts say that in view of low inflation and mixed US employment data, the central bank may keep interest rates stable in January, but rates may be cut two to three times in a year, which is expected to increase the demand for gold.
Rahul Kalantri, commodity expert at Mehta Equities Limited, said that due to unrest in Iran and increasing tension in different parts of the world, investors are buying gold and silver as safe options. He said that the inflation figure being lower than expected has indicated that the inflationary pressure is gradually decreasing.
According to experts, gold is getting support around Rs 1,39,550 to Rs 1,37,310, while on the upside there is resistance at Rs 1,44,350 to Rs 1,46,670. At the same time, for silver there is support between Rs 2,69,810 and Rs 2,54,170 and resistance between Rs 2,79,810 and Rs 2,84,470.
Market experts say that unrest in Iran, tensions related to Venezuela and Greenland are also helping in increasing the prices of gold and silver.
According to experts, gold and silver prices may remain volatile this week due to fluctuations in dollar prices and the US Supreme Court’s decision related to tariffs.
The expert further said that after a strong rally, silver prices remain well above the short and medium-term average due to increasing demand from industries like solar energy, electric vehicles, AI, electronics and limited supply in the market. For this reason, more buying is being seen in silver.
–IANS
DBP/AS